A state administrator cannot require the registration of federal covered securities in the state. Federal covered securities include any of the securities listed below:

  • Exchange-listed Securities - This refers to any security listed on the New York Stock Exchange, American Stock Exchange or Nasdaq, as well as senior securities (such as preferred stocks and bonds of a company whose stock is so listed).

  • Investment Company Shares - This refers to mutual fund shares issued by a registered investment company and sold to qualified purchasers (an individual with at least $5 million in investments or investment managers with at least $25 million in assets under management).

  • Initial Public Offerings - A state administrator cannot require registration of IPOs, but they can require a notice filing in the state and a payment of a filing fee.


Exam Tips and Tricks
Questions about securities registration tend to be very straightforward. Remember that only two questions involving securities registration are scheduled to be on the exam. Here are two likely questions involving exempt securities or transactions:

Which of the following securities is NOT exempt under the Uniform Securities Act?

  1. Limited partnerships
  2. Convertible bonds of a NYSE-listed company
  3. U.S. Treasury bonds
  4. Stock issued by a nonprofit organization

The answer is A, since all the other options listed are specifically exempted.

  1. ABC Corporation has never previously issued securities registered by the SEC. It can register in the state by which method(s)?
    1. Registration by filing
    2. Registration by coordination
    3. Registration by qualification
    4. Registration by administration
    1. I only
    2. II only
    3. II and III
    4. I, III & IV

The correct answer is C, since registration by filing is only available to companies that have previously registered securities with the SEC, and registration by administration is not a valid registration method.

Introduction

Related Articles
  1. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  2. Investing

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  3. Managing Wealth

    Trade Name Vs. Trademark: Know the Difference

    Understand the differences between a trade name and a trademark, the different functions they serve and registration considerations for business owners.
  4. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  5. Insights

    The National Futures Association As Market Watchdog

    As the overseer of the commodities and futures industry, the NFA helps to protect investors from fraudulent futures activities.
  6. Investing

    Commercial Paper

    Commercial paper is a short-term debt security issued by financial companies and large corporations. The corporation promises the buyer a return, or profit, for making the loan. The return is ...
  7. Personal Finance

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  8. Financial Advisor

    The Issuance Procedure of Corporate High-yield Bonds

    Issuing debt over equity can have several advantages for companies. Here we have a detailed look on the issuance procedure of corporate high-yield bonds.
  9. Personal Finance

    Understanding Rule 144A

    Rule 144A is an SEC rule that changes the two-year holding period requirement on privately placed securities.
  10. Insights

    Understanding the SEC

    The SEC's triple mandate of investor protection, maintenance of orderly markets and facilitation of capital formation makes it a vital player in capital markets.
Frequently Asked Questions
  1. When are Beneficiaries of a Will Notified?

    Learn when the beneficiaries of a will must be notified, and understand how this requirement varies depending on whether ...
  2. Why Does Larry Page Pay Himself a $1 Salary?

    Google co-founder Larry Page continues to take an annual salary of only $1 as chief executive officer.
  3. What is Common Stock and Preferred Stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ...
  4. Can CareCredit be Used for Family Members?

    Learn more about the available options that CareCredit offers to pay for out-of-pocket medical procedures with little to ...
Trading Center